TiVo has reported its financial results for the second quarter of 2018, recording $160.2 million in revenue, down from $173.7 million during the same period in 2017, an 8% decline year-on-year. During an investors’ conference, TiVo reiterated that it is exploring a range of strategic alternatives to maximise its value for shareholders. While this review remains in process, progress has been made and the company says its focus has begun to narrow.
The company has said that it does not believe, at this time, that using capital for a significant acquisition would be the best way to deliver value for its shareholders. Its strategic review process has reaffirmed the company’s asset value and positions in both the product and IP licensing markets. TiVo says it remains committed to developing compelling and relevant solutions that can deliver customer value and it will continue to invest in offerings aligned with current and emerging market needs.
TiVo says it has also learned that potential parties recognise the strategic value of product and IP businesses individually and there is an opportunity in the marketplace for a “well-scaled, next-generation video products business, with good growth potential that revolutionises how we watch TV and effectively enables monetisation of the experience”. The company also believes there are strategic IP opportunities that will enable the business to continue growing profitably in both existing and adjacent markets.
The company revealed that its previously identified $10 million in additional current-year cost improvements are almost all implemented. TiVo now expects to produce annual savings of $25 million by the end of 2018. Management and board members are still conducting an in-depth review of its businesses, cost structure and strategic options. Due to the broad range of potential outcomes, the company is not currently providing financial estimates for 2018.
